The Unlimited monthly market and where it should go now...

Image by Leo Reynolds via Flickr

2009 brought with it a lot of buzz on the streets  with Unlimited Monthly plans by such companies as Cricket Wireless, Metro PCS, Virgin Mobile, Boost Mobile, and the big four.  At the end of 2009 and this year , the competition for this sector of the business is heating up and has become more competitive than ever before.

As I wrote about in my article Wireless Predictions for 2010, I stated that there needed to be some consolidation in the market for the "Tier B" carriers.  Since then , big carriers like Verizon Wireless and AT&T have reduced their monthly unlimited plans to reach into the little guys pockets.  Here are the points that I feel are important to show just how much this is heating up....




1.  Verizon Wireless and AT&T lowering their unlimited rate plans.  Verizon throwing the gauntlet down first shows just how much importance carriers are placing on this.  Verizon normally feels they don't have to change any pricing because they are the best.  For them to start this pattern really tells a strong story.  AT&T simply found out about this and went "oh crap, we better react to this after all of those witty 3G coverage commercials"

2.  Metro PCS rate plan change.  Metro revamped all of their rate plans to include taxes, so $40 means $40 (thats before the $3 fee for paying your bill in a store).  This is in response to Boost Mobile selling the $50 all in plan that included taxes.  The handset prices have gone down to offset the fact that they don't offer 30 days of service free anymore.  You must pay your first month up-front.

3.  Boost announces CDMA (again).  Boost is in a nice position right now and they are really the only thing keeping parent company Sprint from not showing a really bad net add loss on their quarterly reports.  With Sprint bleeding Iden subscribers like crazy, Boost picks up some of the slack.  Whats funny about this is a lot of the Nextel subscribers hopping off are experiencing dropped calls and coverage issues.  The dropped calls are notoriously from not enough capacity from the Iden system , which is mostly from the huge on-boarding of  Boost customers.  CDMA brings some nice advantages to the consumer.... Better network, great 3G coverage, better devices, better price points, and a Blackberry device for $249.99 that will be $60 a month ALL IN.  No contract, no credit check.  To duplicate this on Sprint would be $99.99 plus tax monthly.

4.  Cricket Wireless waiting to strike.  Rumors are starting to show up again that they are discussing a merger of sorts with Metro PCS.  While this is smart in my book (It gives them great distribution, the ability to launch LTE faster, and a better handset portfolio), it has challenges.  Think about how many dealers there would be in cities where both co-exist.  Someone has to cut some doors somewhere.  Whats funny about Cricket is they are somewhat "re-active" when it comes to changes, but they are probably sitting back waiting to see how it all plays out. I do know there are some good surprises coming in the first half of 2010 that will make them more competitive than ever.

5.   T-Mobile launches project Black.  It didn't make huge waves, but there is some good things here.  The price points are fair, great handsets, no contracts if you like (pay more for the phone, but get more phone), and pretty good distribution model.  They are doing it right with the T-Mobile Express stores if they hold the standards.

Bottom line is we need some consolidation and some more excitement quick.  These little guys need to act big.  Realize that our market has competitive rate plans and the consumer will win at the end.  The best thing you can do is focus on the following to differentiate you from your competition...

- Customer Service.  Ever try calling up Cricket, Metro, or Boosts customer care?  Its big fun.  Put a huge focus on this and you can win.  Look at T-Mobile, they are not lying when they say its the best customer service in the industry.  Do it better than them.

- Handsets, handsets, handsets.  Rate plans will always fluctuate and ARPU is how a carrier is judged.  However, handsets are what drives people in the stores to look.  Just ask AT&T about their 4th quarter. We are handset hungry.  Be first to market with the best and people will come.  The bonus advantage, REDUCE CHURN.  People who love their handset tend to pay the bill more often!

- Be picky on your distribution.  Joe's pizzeria should not be selling wireless phones everyone.  They should be focused on how to make their crust better.  Limit the distribution and really focus on training and support.  Take only dealers that are committed to the brand and making it better.  Joe's pizzeria is not representing you well !

- Get 4G to market and make it competitive.  If Clear(wire) is in your market, you should know they are aggressive.  They are introducing 4G to the masses so you don't have to.  The opportunity to bring LTE with faster downloads and on the "no contract" model is strong.  Make sure you train the dealers well on how it all works, there are too many computer illiterate people selling solutions for computers.

2010 will be a great year with some great changes for consumers.  Lets take advantage of the opportunity and make some real headway in making a better customer experience. Whoever does this well, wins the game.